MEIKLES Limited has been given the go ahead to delay releasing its financial results, as it waits documents supporting the recovery of funds owed to it by the central bank.
BY VICTORIA MTOMBA
Last year, legislation to take over Reserve Bank of Zimbabwe (RBZ) $1,35 billion debt was passed, with government saying the debtors would be paid in Treasury Bills.
In a statement yesterday, Meikles said a basis on which funds are to recovered from government, in terms of the Reserve Bank of Zimbabwe Debt Assumption Bill of July 2015 had been agreed.
“Documentation in support of the agreement has still not been completed by government. The company has stressed the urgency of this matter with government. This documentation is crucial to the release of the company’s audited financials for the current year. The financial implications of the agreement with government will be included in the annual results for the year to March 31, 2016,” the company said.
Meikles said it had obtained approval from the Zimbabwe Stock Exchange to delay the release of its audited financials until end of this month.
In a trading update, Meikles said turnover for the year to March 31, 2016 increased by 10% to $454 million compared to the previous year, with all of the group’s segments contributing with the exception of hospitality.
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“Shareholders will note from comments made in the chairman statement in the previous year’s financial that disclosure of sums relating to the debt will only be made when the company is in receipt of appropriate documentation,” the company said.
Operating income increased by 14% during the period under review.
It said expenditure was driven primarily by a growth in occupancy costs, resulting from expansion, increased by 1% compared to the previous year.
“This increase represents an effective decline relative to the growth in turnover,” Meikles said.
The company claimed $90 million, including interest, from RBZ, but a debt verification exercise done by the central bank said the debt was $47 million.
